Greening Diesel

The Indian government's initiative to blend used cooking oil (UCO) with diesel to create a biofuel that reduces emissions is gaining attention. However, three years after the first batch of UCO-based biodiesel entered the market, experts assert that the success of this endeavor requires enhanced coordination between the government, industry, and civil society.

India's UCO-based biodiesel sector is still in its early stages. Industry analysts emphasize the need for significant efforts to ensure the collection of UCO in sufficient quantities for blending with diesel. Comparisons with similar policies in the European Union (EU), the United States, and China indicate that the UCO-based biodiesel sector has substantial growth potential.

While UCO-based biodiesel may not yet be as cost-competitive as traditional diesel, its lower carbon intensity and environmental benefits position it as a promising alternative. The continued support from the government, along with the development of necessary infrastructure, is crucial for making UCO-based biodiesel a significant and cost-effective component of India’s renewable energy strategy.

The Government's Renewable Energy Vision

As part of its broader goal to achieve net-zero emissions by 2070, the Indian government has introduced policies aimed at fostering the development and use of cleaner energy sources. Biofuels play a central role in this strategy, with ethanol blending in petrol already showing success. The government has set an ambitious target of blending 20% ethanol with petrol by the 2025-2026 supply year, having already achieved a 15.9% blending rate as of June 2024.

In contrast, biodiesel blending has not seen the same level of success. A plan to blend 5% biodiesel with conventional diesel by 2030 remains far from realization, with current blending levels below 1%. This shortfall is attributed to challenges in UCO collection and the underdeveloped infrastructure for large-scale biodiesel production and blending.

The Repurpose Used Cooking Oil (RUCO) Initiative

To address these challenges, the government is focusing on expanding the Repurpose Used Cooking Oil (RUCO) initiative, launched by the Food Safety and Standards Authority of India (FSSAI) in 2019. This initiative aims to prevent UCO from re-entering the food chain and promote its use in biodiesel production. FSSAI guidelines require eateries generating more than 50 liters of UCO per day to hand over the oil to authorized collection agencies or biodiesel manufacturers registered with the State Pollution Control Board. The plan also includes the development of digital platforms to track UCO disposal and maintain records.

Despite these efforts, the collection and conversion of UCO into biodiesel have not met initial expectations. While participation in the RUCO initiative has improved, particularly among larger businesses, the overall collection remains insufficient.

Challenges and Opportunities in UCO-Diesel Blending

The government's plan to utilize UCO in diesel blending is based on the fact that India consumes 20 million tonnes of edible oil annually, with approximately 3 million tonnes discarded as UCO after use. In May 2021, India began experimenting with blending diesel with a small percentage of UCO-based biodiesel. Despite the government's support, including fixed pricing and guaranteed offtake agreements, the lack of a structured UCO collection system has hindered the widespread adoption of this biofuel.

The success of UCO-based biodiesel blending requires the development of an efficient supply chain for UCO collection. Establishing a robust infrastructure to collect discarded cooking oil from large centers such as hotels, canteens, and restaurants, particularly in major cities, is essential. Countries like China, the US, and several European nations have successfully implemented similar systems, thanks to their robust supply chains and technological frameworks.

India's challenge lies in replicating these models on a scale that matches its vast and diverse landscape. The country must establish an integrated and efficient supply chain that can handle the complexities of UCO collection from both commercial establishments and households. This will require significant investments in infrastructure, technology, and public awareness campaigns.

The Need for Infrastructure and Technology

One of the key obstacles to the large-scale production and blending of UCO-based biodiesel is the underdeveloped infrastructure. Compared to the ethanol blending program, which has benefited from better-established systems, UCO biodiesel production lags due to limited availability of feedstock and technological constraints. The processing of various biodiesel feedstocks, including UCO, is still evolving and has not been widely adopted.

Moreover, the economic and regulatory environment also presents challenges. The biodiesel sector requires clearer policies, stronger incentives, and improvements in cost competitiveness to gain momentum. A well-developed infrastructure would enable the sector to scale up, reducing costs and making UCO-based biodiesel a viable alternative to conventional diesel.

The Role of Public Awareness and Incentives

Public awareness is a critical component of the UCO-based biodiesel initiative. Educating the public on the environmental benefits of recycling used cooking oil can drive greater participation in the RUCO initiative. Offering incentives, such as subsidies, tax benefits, or purchase agreements, could also encourage businesses and households to contribute to the biodiesel supply chain.

In addition to public awareness, strict enforcement of regulations is essential to ensure compliance among eateries and restaurants. Establishing partnerships between these establishments and authorized UCO recyclers can facilitate the efficient collection of UCO, ensuring that it is channeled into biodiesel production rather than being reused or discarded.

The Road Ahead: Scaling Up UCO-Based Biodiesel

For India to achieve its goals of blending 5% biodiesel with conventional diesel by 2030, significant efforts are required across multiple fronts. The government must continue to provide support through favorable policies and incentives, while also investing in the necessary infrastructure to scale up production. Industry stakeholders must collaborate to develop efficient supply chains and adopt emerging technologies that can enhance the processing of UCO and other biodiesel feedstocks.

Ultimately, the success of India's UCO-based biodiesel initiative will depend on a holistic approach that addresses the entire value chain—from UCO collection to biodiesel production and blending. With the right strategies in place, UCO-based biodiesel could become a key component of India’s renewable energy mix, contributing to the nation’s broader goals of reducing carbon emissions and achieving net-zero status by 2070.